SAN DIEGO, Nov. 1, 2016
/PRNewswire/ -- Maxwell Technologies, Inc. (NASDAQ: MXWL) today
reported operational and financial results for the three months
ended September 30, 2016. Total
revenues for the third quarter of 2016 were $25.5 million, compared with $34.1 million for the second quarter of 2016 and
$45.1 million for the prior year
quarter. Net loss for the third quarter of 2016 was $6.9 million, compared with net income of
$2.2 million for the second quarter
of 2016 and a net loss of $1.4
million for the prior year quarter. The Company reported
$(2.3) million of adjusted earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA) for the third quarter of 2016, compared with $(0.7) million for the second quarter of 2016 and
$3.8 million for the prior year
quarter. Non-GAAP net loss for the third quarter of 2016 was
$5.6 million, compared with a
non-GAAP net loss of $4.0 million for
the second quarter of 2016 and non-GAAP net income of $0.2 million for the prior year quarter.
"Third quarter financial results were in line with our
expectations. Although we continue to face challenging conditions
in the China bus and wind markets,
we have made great progress on our longer term strategic
initiatives to solidify and diversify our business," said Dr.
Franz Fink, Maxwell's President and
Chief Executive Officer. "We remain vigilant about our cost
structure as we navigate through these near term challenges but we
are prudently investing in exciting opportunities. Our investments
show early promise in the auto market, where we have solidified new
design wins and have growing confidence in the long-term growth
opportunity."
Financial Results
and Operating Metrics (1)
|
(Unaudited; in
thousands, except for per share amounts)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Total
revenue
|
|
$
|
25,506
|
|
|
$
|
34,135
|
|
|
$
|
45,076
|
|
|
$
|
94,844
|
|
|
$
|
117,542
|
|
Ultracapacitor
revenue
|
|
$
|
14,017
|
|
|
$
|
21,224
|
|
|
$
|
31,801
|
|
|
$
|
58,761
|
|
|
$
|
77,194
|
|
High-Voltage
revenue
|
|
$
|
11,489
|
|
|
$
|
11,841
|
|
|
$
|
10,275
|
|
|
$
|
31,507
|
|
|
$
|
32,818
|
|
Microelectronics
revenue
|
|
$
|
—
|
|
|
$
|
1,070
|
|
|
$
|
3,000
|
|
|
$
|
4,576
|
|
|
$
|
7,530
|
|
Gross
margin
|
|
29.9
|
%
|
|
29.2
|
%
|
|
31.6
|
%
|
|
28.7
|
%
|
|
31.2
|
%
|
Non-GAAP gross
margin
|
|
30.5
|
%
|
|
30.0
|
%
|
|
32.3
|
%
|
|
29.6
|
%
|
|
32.0
|
%
|
Operating
loss
|
|
$
|
(5,939)
|
|
|
$
|
(3,812)
|
|
|
$
|
(651)
|
|
|
$
|
(15,991)
|
|
|
$
|
(15,482)
|
|
Non-GAAP operating
income (loss)
|
|
$
|
(4,730)
|
|
|
$
|
(3,120)
|
|
|
$
|
1,032
|
|
|
$
|
(11,571)
|
|
|
$
|
(8,858)
|
|
Net income
(loss)
|
|
$
|
(6,855)
|
|
|
$
|
2,167
|
|
|
$
|
(1,449)
|
|
|
$
|
(11,536)
|
|
|
$
|
(20,166)
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.21)
|
|
|
$
|
0.07
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.66)
|
|
Adjusted
EBITDA
|
|
$
|
(2,280)
|
|
|
$
|
(741)
|
|
|
$
|
3,765
|
|
|
$
|
(4,280)
|
|
|
$
|
(381)
|
|
Non-GAAP net income
(loss)
|
|
$
|
(5,646)
|
|
|
$
|
(4,038)
|
|
|
$
|
234
|
|
|
$
|
(14,013)
|
|
|
$
|
(11,457)
|
|
Non-GAAP net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.18)
|
|
|
$
|
(0.13)
|
|
|
$
|
0.01
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.38)
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
(6,995)
|
|
|
$
|
(5,394)
|
|
|
$
|
7,406
|
|
|
$
|
(13,983)
|
|
|
$
|
8,530
|
|
Cash purchases of
property and equipment
|
|
$
|
1,060
|
|
|
$
|
1,391
|
|
|
$
|
562
|
|
|
$
|
4,689
|
|
|
$
|
2,779
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
27,902
|
|
|
$
|
35,775
|
|
|
$
|
25,213
|
|
|
$
|
27,902
|
|
|
$
|
25,213
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
For a reconciliation of non-GAAP financial measures, please
refer to the section entitled "Reconciliation of GAAP to Non-GAAP
Financial Measures" included at the end of this
release.
|
Discussion of Financial and Operational Results for the
Quarter
Revenue and Gross Margin
- Total revenue for the third quarter of 2016 was $25.5 million, compared with $34.1 million for the second quarter of 2016,
primarily due to a decrease in ultracapacitor revenue.
- Ultracapacitor revenue for the third quarter of 2016 was
$14.0 million, compared with
$21.2 million for the second quarter
of 2016, primarily driven by an expected decline in wind turbine
deployments in China.
- High-voltage revenue was $11.5
million for the third quarter of 2016, compared with
$11.8 million for the second quarter
of 2016.
- The microelectronics product line was sold in the second
quarter of 2016 and revenue of $1.1
million for the second quarter of 2016 reflects the 27 day
period during which it was owned by Maxwell.
- Gross margin for the third quarter of 2016 was 29.9% compared
with 29.2% in the second quarter of 2016.
- Non-GAAP gross margin for the third quarter of 2016 was 30.5%
compared with 30.0% in the second quarter of 2016.
Net Income (Loss), Adjusted EBITDA, Operating Expense
& Operating Loss
- Net loss for the third quarter of 2016 was $6.9 million, or $(0.21) per share, compared with net income of
$2.2 million, or $0.07 per share, for the second quarter of 2016.
The second quarter net income resulted primarily from a gain on the
sale of the microelectronics product line.
- Non-GAAP net loss for the third quarter of 2016 was
$5.6 million compared with a non-GAAP
net loss of $4.0 million for the
second quarter of 2016.
- Adjusted EBITDA for the third quarter of 2016 was $(2.3) million, compared with $(0.7) million for the second quarter of 2016.
The quarter-over-quarter decrease was primarily driven by a
decrease in revenue partially offset by reduced operating
expenses.
- Operating expense for the third quarter of 2016 was
$13.6 million, compared with
$13.8 million for the second quarter
of 2016. The quarter-over-quarter decrease was primarily a result
of savings from the sale of the microelectronics product line,
increased funding from business partners and cost savings efforts,
offset by the second quarter release of a tax liability which
lowered expense in that quarter.
- Non-GAAP operating expense for the third quarter of 2016 was
$12.5 million compared with
$13.4 million for the second quarter
of 2016 and excludes stock-based compensation, legal expenses
associated with SEC and FCPA matters, the release of a tax
liability, and other non-standard charges not reflective of the
on-going costs to run the business.
- Operating loss for the third quarter of 2016 was $5.9 million, compared with an operating loss of
$3.8 million for the second quarter
of 2016. The quarter-over-quarter increase in operating loss was
primarily driven by a decrease in revenue partially offset by lower
operating expenses.
- Non-GAAP operating loss for the third quarter of 2016 was
$4.7 million compared with a non-GAAP
operating loss of $3.1 million for
the second quarter of 2016.
Capital Expenditures
- Capital expenditures during the third quarter of 2016 were
$1.1 million, compared with
$1.4 million for the second quarter
of 2016. Capital expenditures in the third quarter of 2016
primarily related to capital investments to support new technology
and research and development activities.
Business Outlook
- Total revenue for the fourth quarter of 2016 is expected to be
in the range of $24 million to $27
million.
- Gross margin for the fourth quarter of 2016 is expected to be
in the range of 26.5% to 29.5%.
- Non-GAAP gross margin for the fourth quarter of 2016 is
expected to be in the range of 27% to 30%.
- GAAP operating expense for the fourth quarter of 2016 is
expected to be in the range of $13.8 million
to $14.2 million.
- Non-GAAP operating expense for the fourth quarter of 2016 is
expected to be in the range of $12.3 million
to $12.7 million.
The Company has reconciled expected GAAP and non-GAAP gross
margin, operating expenses, adjusted EBITDA, net loss and net loss
per share at the midpoint of expectations. However, the Company is
not able to estimate additional potentially excluded and
reconciling amounts due to the substantial uncertainties involved.
The effect of these excluded items may be significant.
The reconciliation of GAAP and non-GAAP fourth quarter outlook
is as follows (in millions, except for percentages and per share
data):
|
Projected at
Midpoint
of Guidance
|
|
Projected at
Midpoint
of Guidance
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2016
|
Gross Margin
Reconciliation:
|
|
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
GAAP gross
margin
|
|
28.0
|
%
|
|
GAAP total operating
expenses
|
|
$
|
14.0
|
|
|
Stock-based
compensation expense
|
|
0.5
|
%
|
|
Stock-based
compensation expense
|
|
(1.3)
|
|
|
Non-GAAP gross
margin
|
|
28.5
|
%
|
|
Legal cost for SEC
and FCPA matters
|
|
(0.2)
|
|
|
|
|
|
|
Non-GAAP total
operating expenses
|
|
$
|
12.5
|
|
|
Net Loss
Reconciliation:
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(7.7)
|
|
|
Adjusted EBITDA
Reconciliation:
|
|
|
|
Stock-based
compensation expense
|
|
1.4
|
|
|
GAAP net
loss
|
|
$
|
(7.7)
|
|
|
Legal cost for SEC
and FCPA matters
|
|
0.2
|
|
|
Interest, taxes,
depreciation
|
|
3.4
|
|
|
Non-GAAP net
loss
|
|
$
|
(6.1)
|
|
|
EBITDA
|
|
(4.3)
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
1.4
|
|
|
Net Loss per
Share Reconciliation:
|
|
|
|
Legal cost for SEC
and FCPA matters
|
|
0.2
|
|
|
GAAP net loss per
basic share
|
|
$
|
(0.24)
|
|
|
Adjusted
EBITDA
|
|
$
|
(2.7)
|
|
|
Stock-based
compensation expense
|
|
0.05
|
|
|
|
|
|
|
Non-GAAP net loss per
diluted share
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Business & Operational Highlights
- Welcomed Olaf Müller as Senior Vice President of Global Sales.
A veteran of the automotive industry with deep expertise in sales
and business development, Müller is tasked with supporting Maxwell
in its efforts for continued worldwide growth and demand for the
company's energy storage and power delivery solutions.
- Announced the first commercial application of lithium-ion
capacitors to be used for regenerative braking energy storage in
the Beijing subway system. As part
of the strategic partnership with China Railway Rolling Stock
Corporation (CRRC-SRI) Maxwell announced last year, the companies
continue to collaborate to develop next-generation capacitive
energy storage solutions for the China rail market.
Webcast Information
As previously announced, Maxwell management will host a live
webcast at approximately 5:00 p.m.
EDT / 2:00 p.m. PDT today to
discuss these results. Other forward-looking and material
information may also be discussed during this call.
The call may be accessed by dialing toll-free, (800) 862-9098
from the U.S. and Canada, or (785)
424-1051 for international callers, and entering the conference ID,
MAXWELL.
More information about this event including a live webcast and
other supporting materials may be accessed by visiting
http://investors.maxwell.com.
A replay of the conference call will be available for a limited
time by visiting http://investors.maxwell.com.
About Maxwell
Maxwell is a global leader in the development and manufacture of
innovative, cost-effective energy storage and power delivery
solutions. Our ultracapacitor products provide safe and reliable
power solutions for applications in consumer and industrial
electronics, transportation, renewable energy and information
technology. Our CONDIS® high-voltage grading and coupling
capacitors help to ensure the safety and reliability of electric
utility infrastructure and other applications involving transport,
distribution and measurement of high-voltage electrical energy. For
more information, visit www.maxwell.com.
Notes Regarding Non-GAAP Financial Measures
The Company uses non-GAAP financial measures for internal
evaluation and to report the results of its business. Information
presented in this press release and in the attached financial
tables includes financial information prepared in accordance with
generally accepted accounting principles in the U.S., or GAAP, as
well as non-GAAP financial measures. Generally, a non-GAAP
financial measure, within the meaning of Item 10 of Regulation S-K
promulgated by the Securities and Exchange Commission (SEC), is a
numerical measure of a company's financial performance or cash
flows that (a) excludes amounts, or is subject to adjustments that
have the effect of excluding amounts, which are included in the
most directly comparable measure calculated and presented in
accordance with GAAP in the condensed consolidated balance sheets,
condensed consolidated statements of comprehensive income or
condensed consolidated statements of cash flows; or (b) includes
amounts, or is subject to adjustments that have the effect of
including amounts, which are excluded from the most directly
comparable measure so calculated and presented.
The Company uses the following non-GAAP financial measures in
this release, in its earnings conference call and in its on-going
evaluation of the business: (a) non-GAAP gross profit; (b) non-GAAP
operating expense; (c) non-GAAP income (loss) from operations; (d)
EBITDA; (e) adjusted EBITDA; (f) non-GAAP net income (loss); (g)
non-GAAP net income (loss) per diluted share and (h) non-GAAP gross
margin.
The Company believes that these measures provide useful
information to its management, board of directors and investors
about its operating activities and business trends related to its
financial condition and results of operations.
In addition, the Company's management and board of directors use
these non-GAAP financial measures in developing operating budgets
and in reviewing the Company's results of operations, as non-cash
items, non-recurring items and items unrelated to ongoing operating
results have limited impact on current and future operating
decisions. Additionally, the Company believes that inclusion of
non-GAAP financial measures provides consistency and comparability
with its past reports of financial results. Non-GAAP financial
measures should be considered in addition to, but not as a
substitute for, the information prepared in accordance with GAAP.
These measures are intended to supplement GAAP financial
information, and may be computed differently from non-GAAP
financial measures used by other companies. However, investors
should be aware that non-GAAP measures have inherent limitations
and should be read in conjunction with the Company's consolidated
financial statements prepared in accordance with GAAP.
The Company's statements of operations included in this news
release are affected by the following non-cash items, non-recurring
items or items unrelated to its ongoing operating results:
- Stock-based compensation expense consists of non-cash charges
for employee stock options, restricted stock awards, restricted
stock units, employee stock purchase plan awards and bonuses
expected to be settled with the Company's fully vested common
stock.
- Gain on sale of product line consists of the gain recorded in
connection with the sale of the Company's microelectronics product
line.
- Release of tax liability consists of a foreign tax liability
that was released without payment due to the lapse of a statute of
limitation.
- Tax impact of potential cash repatriation consists of non-cash
charges associated with a portion of the unremitted earnings of a
foreign subsidiary that may be repatriated to the U.S.
- Restructuring and related costs represent restructuring and
exit costs incurred in connection with the Company's restructuring
plan, disposition transaction costs consisting of legal fees and
other expenses incurred in connection with the sale of the
microelectronics product line and executive transition costs
representing recruiting and other expenses incurred in relation to
the resignation and hiring of certain executive officers.
- Accelerated depreciation charges represent the adjustment of
the remaining useful life for certain manufacturing equipment in
connection with the Company's restructuring plan.
- CFO transition costs consist of severance charges related to
the departure of the Company's former CFO.
- VAT refund represents a refund of value-added-tax related to
operations in China.
- Shareholder proxy advisement fees represent external advisor
expenses incurred in connection with preparing for the Company's
2016 shareholder proxy and annual meeting.
- Legal costs for the FCPA and SEC matters represent external
legal expenses related to the U.S. Securities and Exchange
Commission's investigation of the facts and circumstances
surrounding the restatement of the Company's financial statements
for the fiscal years 2011 and 2012, as well as for ongoing legal
matters related to previous Foreign Corrupt Practices Act (FCPA)
violations.
Reconciliations of non-GAAP financial measures used in this
release to the most directly comparable GAAP financial measures can
be found in the section entitled "Reconciliation of GAAP to
Non-GAAP Financial Measures" included toward the end of this
release.
Forward-Looking Statements
Statements in this news release that are "forward-looking
statements" are based on current expectations and assumptions that
are subject to risks and uncertainties and are subject to the Safe
Harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Such risks, uncertainties and contingencies
include, but are not limited to, the following:
- Our ability to remain competitive and stimulate customer demand
through successful introduction of new products, and to educate our
prospective customers on the products we offer;
- Dependence upon the sale of products to a small number of
customers and vertical markets, some of which are heavily dependent
on government funding or government subsidy programs which could be
reduced, modified or discontinued in the future;
- Dependence upon the sale of products into Asia and Europe, where macroeconomic factors outside
our control may adversely affect our sales;
- Downward pressures on product pricing from increased
competition and shifts in sales mix with respect to low margin and
high margin business;
- Risks related to our international operations including, but
not limited to, our ability to adequately comply with the changing
rules and regulations in countries where our business is conducted,
our ability to oversee and control our foreign subsidiaries and
their operations, our ability to effectively manage foreign
currency exchange rate fluctuations arising from our international
operations, and our ability to continue to comply with the U.S.
Foreign Corrupt Practices Act as well as the anti-bribery laws of
foreign jurisdictions;
- Risk that our restructuring efforts may not be successful and
that we may not be able to realize the anticipated cost savings and
other benefits;
- Successful acquisition, development and retention of key
personnel;
- Our ability to effectively manage our reliance upon certain
suppliers of key component parts, specialty equipment and
logistical services;
- Our ability to match production volume to actual customer
demand;
- Our ability to manage product quality problems;
- Our ability to protect our intellectual property rights and to
defend claims against us;
- Our ability to effectively identify, enter into, manage and
benefit from strategic alliances;
- Occurrence of a catastrophic event at any of our
facilities;
- Occurrence of a technology systems failure, network disruption,
or breach in data security;
- Our ability to obtain sufficient capital to meet our operating
or other needs; and,
- Our ability to manage and minimize the impact of unfavorable
legal proceedings.
For further information regarding risks and uncertainties
associated with Maxwell's business, please refer to the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" and "Risk Factors" sections of our SEC
filings, including, but not limited to, our annual report on Form
10-K and quarterly reports on Form 10-Q. Copies of these documents
may be obtained by contacting Maxwell's investor relations
department at (858) 503-3359, or at our investor relations website:
investors.maxwell.com. All information in this release is as of
November 1, 2016. The Company undertakes no duty to update any
forward-looking statement to reflect actual results or changes in
the Company's expectations.
Investor Contact: Soohwan
Kim, CFA, The Blueshirt Group, +1 (858) 503-3359,
ir@maxwell.com
Media Contact: Sylvie
Tse, Metis Communications, +1 (617) 236-0500,
maxwell@metiscomm.com
MAXWELL
TECHNOLOGIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Revenue
|
|
$
|
25,506
|
|
|
$
|
34,135
|
|
|
$
|
45,076
|
|
|
$
|
94,844
|
|
|
$
|
117,542
|
|
Cost of
revenue
|
|
17,878
|
|
|
24,154
|
|
|
30,820
|
|
|
67,582
|
|
|
80,830
|
|
Gross
profit
|
|
7,628
|
|
|
9,981
|
|
|
14,256
|
|
|
27,262
|
|
|
36,712
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
8,374
|
|
|
8,223
|
|
|
9,070
|
|
|
26,695
|
|
|
30,169
|
|
Research and
development
|
|
5,193
|
|
|
5,461
|
|
|
5,781
|
|
|
16,261
|
|
|
19,629
|
|
Restructuring and
exit costs
|
|
—
|
|
|
109
|
|
|
56
|
|
|
297
|
|
|
2,396
|
|
Total operating
expenses
|
|
13,567
|
|
|
13,793
|
|
|
14,907
|
|
|
43,253
|
|
|
52,194
|
|
Loss from
operations
|
|
(5,939)
|
|
|
(3,812)
|
|
|
(651)
|
|
|
(15,991)
|
|
|
(15,482)
|
|
Gain on sale of
product line
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
Interest expense,
net
|
|
48
|
|
|
61
|
|
|
30
|
|
|
179
|
|
|
201
|
|
Other
income
|
|
(5)
|
|
|
(47)
|
|
|
—
|
|
|
(136)
|
|
|
—
|
|
Foreign currency
exchange (gain) loss, net
|
|
49
|
|
|
64
|
|
|
(97)
|
|
|
252
|
|
|
316
|
|
Income (loss) before
income taxes
|
|
(6,031)
|
|
|
2,767
|
|
|
(584)
|
|
|
(9,629)
|
|
|
(15,999)
|
|
Income tax
provision
|
|
824
|
|
|
600
|
|
|
865
|
|
|
1,907
|
|
|
4,167
|
|
Net income
(loss)
|
|
$
|
(6,855)
|
|
|
$
|
2,167
|
|
|
$
|
(1,449)
|
|
|
$
|
(11,536)
|
|
|
$
|
(20,166)
|
|
Net income (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.21)
|
|
|
$
|
0.07
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.66)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
31,989
|
|
|
31,842
|
|
|
31,529
|
|
|
31,828
|
|
|
30,440
|
|
Diluted
|
|
31,989
|
|
|
32,027
|
|
|
31,529
|
|
|
31,828
|
|
|
30,440
|
|
MAXWELL
TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except per share data)
(Unaudited)
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
27,802
|
|
|
$
|
24,382
|
|
Restricted
cash
|
|
100
|
|
|
400
|
|
Trade and other
accounts receivable, net
|
|
20,661
|
|
|
43,172
|
|
Inventories,
net
|
|
34,939
|
|
|
39,055
|
|
Prepaid expenses and
other current assets
|
|
5,319
|
|
|
2,593
|
|
Total current
assets
|
|
88,821
|
|
|
109,602
|
|
Property and
equipment, net
|
|
28,978
|
|
|
32,324
|
|
Goodwill
|
|
23,856
|
|
|
23,635
|
|
Pension
asset
|
|
6,265
|
|
|
5,849
|
|
Other non-current
assets
|
|
678
|
|
|
603
|
|
Total
assets
|
|
$
|
148,598
|
|
|
$
|
172,013
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
17,536
|
|
|
$
|
33,985
|
|
Accrued employee
compensation
|
|
6,229
|
|
|
6,672
|
|
Deferred revenue and
customer deposits
|
|
3,079
|
|
|
3,066
|
|
Short-term borrowings
and current portion of long-term debt
|
|
44
|
|
|
42
|
|
Total current
liabilities
|
|
26,888
|
|
|
43,765
|
|
Deferred tax
liability, long-term
|
|
6,313
|
|
|
6,076
|
|
Long-term debt,
excluding current portion
|
|
56
|
|
|
49
|
|
Other long-term
liabilities
|
|
2,451
|
|
|
2,947
|
|
Total
liabilities
|
|
35,708
|
|
|
52,837
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.10
par value per share, 80,000 and 40,000 shares authorized at
September 30, 2016 and December 31, 2015, respectively;
32,090 and 31,782 shares issued and outstanding at
September 30, 2016 and December 31, 2015,
respectively
|
|
3,206
|
|
|
3,176
|
|
Additional paid-in
capital
|
|
294,932
|
|
|
291,505
|
|
Accumulated
deficit
|
|
(191,935)
|
|
|
(180,399)
|
|
Accumulated other
comprehensive income
|
|
6,687
|
|
|
4,894
|
|
Total stockholders'
equity
|
|
112,890
|
|
|
119,176
|
|
Total liabilities and
stockholders' equity
|
|
$
|
148,598
|
|
|
$
|
172,013
|
|
MAXWELL
TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (in thousands, except per share data)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30, 2016
|
|
June 30,
2016
|
|
September
30, 2015
|
|
September
30, 2016
|
|
September
30, 2015
|
Gross Profit
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
|
7,628
|
|
|
$
|
9,981
|
|
|
$
|
14,256
|
|
|
$
|
27,262
|
|
|
$
|
36,712
|
|
Stock-based
compensation expense
|
|
146
|
|
|
262
|
|
|
186
|
|
|
643
|
|
|
539
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
309
|
|
Non-GAAP gross
profit
|
|
$
|
7,774
|
|
|
$
|
10,243
|
|
|
$
|
14,567
|
|
|
$
|
28,030
|
|
|
$
|
37,560
|
|
Total Operating
Expenses Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
|
$
|
13,567
|
|
|
$
|
13,793
|
|
|
$
|
14,907
|
|
|
$
|
43,253
|
|
|
$
|
52,194
|
|
Stock-based
compensation expense
|
|
(951)
|
|
|
(1,197)
|
|
|
(869)
|
|
|
(3,116)
|
|
|
(2,367)
|
|
Restructuring and
related costs
|
|
—
|
|
|
(279)
|
|
|
(56)
|
|
|
(853)
|
|
|
(2,396)
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(284)
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
474
|
|
|
—
|
|
|
474
|
|
Release of tax
liability(1)
|
|
—
|
|
|
1,278
|
|
|
—
|
|
|
1,278
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(314)
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
|
(112)
|
|
|
(232)
|
|
|
(921)
|
|
|
(647)
|
|
|
(1,203)
|
|
Non-GAAP operating
expenses
|
|
$
|
12,504
|
|
|
$
|
13,363
|
|
|
$
|
13,535
|
|
|
$
|
39,601
|
|
|
$
|
46,418
|
|
Income (Loss)
From Operations Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
$
|
(5,939)
|
|
|
$
|
(3,812)
|
|
|
$
|
(651)
|
|
|
$
|
(15,991)
|
|
|
$
|
(15,482)
|
|
Stock-based
compensation expense
|
|
1,097
|
|
|
1,459
|
|
|
1,055
|
|
|
3,759
|
|
|
2,906
|
|
Restructuring and
related costs
|
|
—
|
|
|
279
|
|
|
56
|
|
|
853
|
|
|
2,396
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
309
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
(474)
|
|
|
—
|
|
|
(474)
|
|
Release of tax
liability(1)
|
|
—
|
|
|
(1,278)
|
|
|
—
|
|
|
(1,278)
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
314
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
|
112
|
|
|
232
|
|
|
921
|
|
|
647
|
|
|
1,203
|
|
Non-GAAP net income
(loss) from operations
|
|
$
|
(4,730)
|
|
|
$
|
(3,120)
|
|
|
$
|
1,032
|
|
|
$
|
(11,571)
|
|
|
$
|
(8,858)
|
|
Adjusted EBITDA
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
|
(6,855)
|
|
|
$
|
2,167
|
|
|
$
|
(1,449)
|
|
|
$
|
(11,536)
|
|
|
$
|
(20,166)
|
|
Interest expense,
net
|
|
48
|
|
|
61
|
|
|
30
|
|
|
179
|
|
|
201
|
|
Income tax
provision
|
|
824
|
|
|
600
|
|
|
865
|
|
|
1,907
|
|
|
4,167
|
|
Depreciation
|
|
2,450
|
|
|
2,379
|
|
|
2,807
|
|
|
7,416
|
|
|
8,633
|
|
Amortization of
intangible assets
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
153
|
|
EBITDA
|
|
(3,533)
|
|
|
5,207
|
|
|
2,304
|
|
|
(2,034)
|
|
|
(7,012)
|
|
Foreign currency
exchange loss, net
|
|
49
|
|
|
64
|
|
|
(97)
|
|
|
252
|
|
|
316
|
|
Other
income
|
|
(5)
|
|
|
(47)
|
|
|
—
|
|
|
(136)
|
|
|
—
|
|
Stock-based
compensation expense
|
|
1,097
|
|
|
1,459
|
|
|
1,055
|
|
|
3,759
|
|
|
2,906
|
|
Gain on sale of
product line
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
Restructuring and
related costs
|
|
—
|
|
|
279
|
|
|
56
|
|
|
853
|
|
|
2,396
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
(474)
|
|
|
—
|
|
|
(474)
|
|
Release of tax
liability(1)
|
|
—
|
|
|
(1,278)
|
|
|
—
|
|
|
(1,278)
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
314
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
|
112
|
|
|
232
|
|
|
921
|
|
|
647
|
|
|
1,203
|
|
Adjusted
EBITDA
|
|
$
|
(2,280)
|
|
|
$
|
(741)
|
|
|
$
|
3,765
|
|
|
$
|
(4,280)
|
|
|
$
|
(381)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30, 2016
|
|
June 30,
2016
|
|
September
30, 2015
|
|
September
30, 2016
|
|
September
30, 2015
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
|
(6,855)
|
|
|
$
|
2,167
|
|
|
$
|
(1,449)
|
|
|
$
|
(11,536)
|
|
|
$
|
(20,166)
|
|
Stock-based
compensation expense
|
|
1,097
|
|
|
1,459
|
|
|
1,055
|
|
|
3,759
|
|
|
2,906
|
|
Gain on sale of
product line
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
|
(6,657)
|
|
|
—
|
|
Tax impact of
potential cash repatriation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,085
|
|
Restructuring and
related costs
|
|
—
|
|
|
279
|
|
|
56
|
|
|
853
|
|
|
2,396
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
309
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
(474)
|
|
|
—
|
|
|
(474)
|
|
Release of tax
liability(1)
|
|
—
|
|
|
(1,518)
|
|
|
—
|
|
|
(1,518)
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
314
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
|
112
|
|
|
232
|
|
|
921
|
|
|
647
|
|
|
1,203
|
|
Non-GAAP net income
(loss)
|
|
$
|
(5,646)
|
|
|
$
|
(4,038)
|
|
|
$
|
234
|
|
|
$
|
(14,013)
|
|
|
$
|
(11,457)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) per Diluted Share Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
|
(0.21)
|
|
|
$
|
0.07
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.66)
|
|
Stock-based
compensation expense
|
|
0.03
|
|
|
0.04
|
|
|
0.03
|
|
|
0.12
|
|
|
0.10
|
|
Gain on sale of
product line
|
|
—
|
|
|
(0.21)
|
|
|
—
|
|
|
(0.21)
|
|
|
—
|
|
Tax impact of
potential cash repatriation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.07
|
|
Restructuring and
related costs
|
|
—
|
|
|
0.01
|
|
|
*
|
|
|
0.03
|
|
|
0.07
|
|
Accelerated
depreciation
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
*
|
|
|
0.01
|
|
CFO
transition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
VAT refund
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.02)
|
|
Release of tax
liability(1)
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Shareholder proxy
advisement fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Legal costs for SEC
and FCPA matters
|
|
*
|
|
|
0.01
|
|
|
0.03
|
|
|
0.02
|
|
|
0.04
|
|
Non-GAAP net income
(loss)
|
|
$
|
(0.18)
|
|
|
$
|
(0.13)
|
|
|
$
|
0.01
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.38)
|
|
Weighted
Average Diluted Common Shares Outstanding used
for:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
31,989
|
|
|
32,027
|
|
|
31,529
|
|
|
31,828
|
|
|
30,440
|
|
Non-GAAP net income
(loss)
|
|
31,989
|
|
|
31,842
|
|
|
31,561
|
|
|
31,828
|
|
|
30,440
|
|
|
|
*
|
Net income (loss)
effect of this reconciling item was less than $0.01 per
share.
|
(1)
|
Release of tax
liability is partially related to operating expense and partially
related to income tax expense.
|
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SOURCE Maxwell Technologies, Inc.